DATE: May 7, 1993 TO: All Property owners FROM: Frank M. Cedrone SUBJECT: Current Status Report 1. Re-financing and Reorganization C.B.G. Limited has secured the pledge of a Loan Guarantee from a foreign bank, in the form of a Standby Forward Takeout Commitment. Simply put, this Guarantee assures that a new Lender or, other money source, will have a AAA (rated by Standard & Poors) Guarantee against any loss of principal and interest. The enabling documents are in the process of being reviewed by attorneys for the, bank who is to issue the Guarantee, the various prospective funding sources, the transfer bank and subsequently, attorneys for C.R.C,. Limited. Once they are approved and distributed to all parties concerned, C.B.G. will enter into contract, he issued a Letter of Commitment and meet with attorneys and executives of First Eastern Bank. Cooperation is required of both secured and unsecured creditors. Timing is very critical, yet we are optimistic that given the required cooperation, C.B.G. will emerge fully intact from Chapter 11. 2. Reorganization and Resumption of Development and Full Scale Operations Within the first 30 days after emergence from the Chapter 11 proceedings, C.B.G. plans to commence the following activities: a. Resumption of utility line installations. b. Repairs to all existing roads, followed by full scale road work as utility lines are completed. c. Clearing of all trees, brush and debris from the entire lakebed of the new Lake Algonquin area (already permitted under our Soil, Sedimentation and Erosion Control Permit) followed by commencement of the dam construction once that final permit is issued. May 7, 1993 Property Owners Page 2 d. Improvements to amenities servicing Lakes Susquehanna and Choctaw, as well as the Fireside Swim & Tennis Clubhouse, the Sports Core amenities and Holiday Park. 3. Special Promotions and Marketing Special Promotional Events are planned to commence within 60 days after Reorganization and a full scale return to marketing, including all major media advertising will commence within 90 days. This time schedule will allow for completion of all new required registrations. 4. Property Owner Assistance During the past and current economic crisis, C.B.G. was not the only casualty. A number of our property owners suffered business reverses, loss of position and income, etc. Still others have experienced a necessity to relocate to different areas of the country. C.B.G. Limited intends to present proposals to all such property owners that are intended to give them assistance, relief and preservation of equity. These proposals have been discussed with our Loan Guarantor and will receive their full support. 5. Property Owner Support of C.B.G.'s Efforts While the overwhelming majority of property owners have expressed strong support for C.B.G. both in writing and via personal visits or telephone calls, there still exists a small handful of highly active detractors. Their actions have contributed to rumors, malicious mischief, acts of vandalism and even outright criminal conduct. It is extremely important that you make an intelligent evaluation of where your best interests lie. Are they best served by C.B.G. Limited in a unified overall comprehensive development of this property and your lifestyle? Or would your interests be better served by a bank takeover, auction type sales of fragmented parcels of the property to separate individuals and/or companies, while the remainder would be left to a disorganized groun of individual property owners to finance, manage and maintain? This happened once before. Property values declined 90%. Maintenance and security virtually disappeared. Years of decline and decay destroyed the quality of life and owners abandoned their properties. Ask those who went through that experience. C.B.G. Limited alone reversed all that and built the beautiful lifestyle that most of you love and enjoy. C.B.G. Limited, with your support, promises to bring even greater benefits to all concerned. We need your support. Sincerely, /s/ Frank M. Cedrone Managing General Partner
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